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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/20/2018 - SECOND READING OF ORDINANCE NO. 137, 2018, BEING TAgenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY November 20, 2018 City Council STAFF Matt Robenalt, Executive Director Kristy Klenk, Financial Coordinator John Duval, Legal SUBJECT Second Reading of Ordinance No. 137, 2018, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2019 and Fixing Mill Levy for the Downtown Development Authority for Fiscal Year 2019. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on November 6, 2018, sets the Downtown Development Authority ("DDA") Budget. The following amounts will be appropriated: DDA Public/Private Investments & Programs $3,470,849 DDA Operations & Maintenance $ 809,787 Revolving Line of Credit Draws $4,000,000 DDA Debt Service Fund $6,225,522 The Ordinance sets the 2019 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged since tax year 2002. The approved Budget becomes the Downtown Development Authority's financial plan for 2019. Ordinance No. 127, 2018 was numbered incorrectly on First Reading. The number has been corrected for Second Reading. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading of Agenda Item Summary, November 6, 2018 (w/o attachments) (PDF) Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY November 6, 2018 City Council STAFF Matt Robenalt, Executive Director Kristy Klenk, Financial Coordinator John Duval, Legal SUBJECT First Reading of Ordinance No. 127, 2018, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2019 and Fixing Mill Levy for the Downtown Development Authority for Fiscal Year 2019. EXECUTIVE SUMMARY The purpose of this item is to set the Downtown Development Authority ("DDA") Budget. The following amounts will be appropriated: DDA Public/Private Investments & Programs $3,470,849 DDA Operations & Maintenance $ 809,787 Revolving Line of Credit Draws $4,000,000 DDA Debt Service Fund $6,225,522 The Ordinance sets the 2019 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged since tax year 2002. The approved Budget becomes the Downtown Development Authority's financial plan for 2019. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Downtown Development Authority (DDA) was created in 1981 with the purpose, according to Colorado state statute, of planning and implementing projects and programs within the boundaries of the DDA. By state statue the purpose of the ad valorem tax levied on all real and personal property in the downtown development district, not to exceed five (5) mills, shall be for the budgeted operations of the authority. The DDA and the City adopted a Plan of Development that specifies the projects and programs the DDA would undertake. In order to carry out the purposes of the State statute and the DDA’s approved plan of development, the City, on behalf of the DDA, has issued various tax increment bonds, which require debt servicing. CITY FINANCIAL IMPACTS The DDA is requesting approval of the DDA Public/Private Investments and Programs budget for fiscal year 2019 in the amount of $3,470,849 and DDA Operation and Maintenance budget for fiscal year 2019 in the amount of $809,787. It is requesting appropriation of up to $4,000,000 for the 2019 Line of Credit draws. It is also requesting approval of the DDA debt payment commitments in the amount of $6,225,522 for 2019 obligations. ATTACHMENT 1 COPY Agenda Item 5 Item # 5 Page 2 The 2019 Public/Private Investments and Programs budget is projected as follows: Uses: Alley Operations $ 263,871 Alley Enhancement/Construction/Design 1,523,433 Warehouse Operations 23,142 Façade Grant Program 165,518 Old Town Square Operations 251,924 Downtown River District Improvements - Jefferson St 435,000 Whitewater Park 27,300 Elks Lot Concept Study & Pre-Development 540,982 Gateway Entrances 75,000 Jack Benny Handprint Restoration 14,409 Other Public/Private Investments & Programs 150,270 Total $3,470,849 The 2019 Operations and Maintenance budget is projected as follows: Uses: Personnel Services $516,441 Contractual Professional Services 244,519 Purchased Supplies and Commodities 29,076 Other 19,751 Total $809,787 The 2019 Line of Credit draws, whose debt service payment will be made from the debt service fund, is projected to fund up to $4,000,000. Uses: Old Firehouse Alley Parking Garage IGA Payment $ 300,000 Multi-Year Reimbursement Payments 531,656 Capital Asset Replacement Reserve 188,700 Capital Asset Maintenance Obligations 504,730 Future Public/Private Investments & Programs 2,474,914 Total $4,000,000 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2019. Uses: Debt Payment: 2019 $6,225,522 BOARD / COMMISSION RECOMMENDATION At its September 13, 2018, meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2019 totaling $14,506,158 and determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA. ATTACHMENTS 1. Boundary Map (PDF) 2. Resolution 2018-03 Determining and Fixing the Mill Levy (PDF) 3. Resolution 2018-04 Determining and Recommending the 2019 Budget (PDF) 4. Resolution 2018-05 Appropriation of the 2019 Line of Credit Draw Service (PDF) 5. Resolution 2018-06 Appropriation for Debt Service (PDF) 6. Resolution 2018-07 Appropriation of Public-Private Investments & Programs (PDF) COPY -1- ORDINANCE NO. 127137, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS (FORMERLY NUMBERED ORDINANCE NO. 127, 2018 IN ERROR) BEING THE ANNUAL APPROPRIATION ORDINANCE FOR THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2019 AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2019 WHEREAS, the Fort Collins Downtown Development Authority (the “DDA”) has been duly organized in accordance with the C.R.S. Section 31-25-804; and WHEREAS, on September 13, 2018, DDA Board of Directors (the “DDA Board”), acting under the provisions of Colorado Revised Statutes (“C.R.S.”) Section 31-25-816, adopted a proposed and recommended DDA budget for the fiscal year beginning January 1, 2019, as reflected in DDA Board Resolutions 2018-04, 2018-05, 2018-06 and 2018-07, (the “Budget”) and determined the mill levy necessary to provide for payment during fiscal year 2019 of properly authorized operational and maintenance expenditures to be incurred by the DDA; and WHEREAS, it is the desire of the Council of the City of Fort Collins (the “City Council”) to appropriate the sum of FOURTEEN MILLION, FIVE HUNDRED SIX THOUSAND, ONE HUNDRED FIFTY-EIGHT DOLLARS ($14,506,158) from the DDA Operation and Maintenance Fund and the DDA Debt Service Fund for the fiscal year beginning January 1, 2019 and ending December 31, 2019, to be used as follows; DDA Public/Private Investments & Programs (O&M Fund) $3,470,849 DDA Operations & Maintenance (O&M Fund) 809,787 2019 Revolving Line of Credit Draws 4,000,000 DDA Debt Service Fund 6,225,522 Total $14,506,158 WHEREAS, the DDA Board, as reflected in DDA Board Resolution 2018-03, has recommended to the City Council that pursuant to C.R.S. Section 31-25-817 the City Council set a mill levy of five (5) mills upon each dollar of assessed valuation on all taxable property within the DDA District, such levy representing the amount of taxes necessary to provide for payment during the 2019 fiscal year for all properly authorized operational and maintenance expenditures to be incurred by the DDA; and WHEREAS, C.R.S. Section 39-5-128(1) requires certification of this mill levy to the Larimer County Board of County Commissioners no later than December 15, 2018; and WHEREAS, a scrivener’s error in the numbering of this Ordinance has been corrected since this Ordinance was adopted on First Reading, and this Ordinance has now been published by correct number and title prior to adoption on Second Reading. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF -2- FORT COLLINS, as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby approves the Budget as provided in C.R.S. Section 31-25-816(1). Section 3. That there is hereby appropriated for fiscal year 2019 for expenditure from the DDA Operation and Maintenance Fund for the Downtown Development Authority Public/Private Investments and Programs the sum of THREE MILLION, FOUR HUNDRED SEVENTY THOUSAND, EIGHT HUNDRED FORTY-NINE DOLLARS ($3,470,849), to be expended to fund the payment of the DDA-related obligations that have been entered into or will be entered into in furtherance of the DDA’s approved plan of development. Section 4. That there is also hereby appropriated for fiscal year 2019 for expenditure from the DDA Operation and Maintenance Fund for the Downtown Development Authority Operation and Maintenance the sum of EIGHT HUNDRED NINE THOUSAND, SEVEN HUNDRED EIGHTY-SEVEN DOLLARS ($809,787), to be expended for the authorized purposes of the DDA. Section 5. That there is hereby appropriated for fiscal year 2019 for expenditure from the Downtown Development Authority 2019 Line of Credit draws the sum of up to FOUR MILLION DOLLARS ($4,000,000), to be used to finance DDA projects or programs in accordance with the DDA approved plan of development including the multi-year reimbursement payments, and capital asset maintenance obligations. Section 6. That there is hereby appropriated for the fiscal year 2019 for expenditure from the Downtown Development Authority Debt Service Fund the sum of SIX MILLION, TWO HUNDRED TWENTY-FIVE THOUSAND, FIVE HUNDRED TWENTY-TWO DOLLARS ($6,225,522), for payment of debt service on previously issued and outstanding bonds, to pay the City’s investment service charge, and for payment on the 2019 Line of Credit draws. Section 7. That the DDA’s mill levy rate for the taxation upon each dollar of the assessed valuation of all taxable property within the DDA District shall be five (5) mills to be imposed on the assessed value of such property as set by state law for property taxes payable in 2019, which levy represents the amount of taxes necessary to provide for payment during fiscal year 2019 of all properly authorized operational and maintenance expenditures to be incurred by the DDA, as appropriated herein. The City Clerk shall certify said mill levy to the County Assessor and the Board of County Commissioners of Larimer County, Colorado, no later than December 15, 2018. -3- Introduced, considered favorably on first reading, and ordered published this 6th day of November, A.D. 2018, and to be presented for final passage on the 20th day of November, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 20th day of November, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk